As costs for business owners continue
to rise, owners are welcoming new
ideas and ways to reduce costs without affecting their company or employees.
American employers faced with the rising
cost of insuring their employees are turning
to on-site clinics integrated with wellness to
improve employee health, boost employee
productivity and reduce their costs, says
Sally Stephens, president of Spectrum Health
Systems.
According to David Beech, a senior health
management consultant at Hewitt Associates
Inc., “A clinic serving about 1,000 employees
(usually considered a minimum number for
critical mass) can expect to make hard-dollar
savings of $70,000 in the first year, mainly
because of fewer visits to the ER and self-referrals to outside specialists. These savings
can rise to $250,000 annually by the third
year, when preventive savings kick in.”
Smart Business spoke with Stephens
about on-site clinics and how implementing
such clinics can benefit both employers and
employees.
Is there a cost savings involved with on-site
clinics?
According to a study published in the
December 2005 issue of the American
Journal of Preventive Medicine, employers
can see a return of $3 to $6 for each dollar
spent over two to five years on workplace
health program strategies, which include
medical screenings, financial perks for participation in health programs, health education classes, healthier food choices in the
cafeteria and on-site clinics. Initially, such
clinics are typically only opened to employees then later to spouses and dependents.
Maximum savings will be generated when
the entire family utilizes the clinic for health
concerns that they might automatically seek
through an outside provider.
What medical services do on-site clinics
offer?
Employer-based clinics may offer a variety
of services such as primary care, travel medicine, nutrition counseling, etc. Preventive
services including health screenings and
immunizations are the most common. Onsite clinics originally began by providing
accident and injury care and have expanded
into primary care, preventive services, disease and lifestyle education, distribution of
pharmaceuticals, and some even provide
diagnostic testing, such as X-rays. The level
of services provided is dependent upon the
needs of the client and capabilities of the
clinic/wellness provider.
What are the benefits of on-site clinics?
Employers can reduce the number of visits
employees make to more costly facilities,
such as physicians’ offices and hospital emergency rooms. Having workplace access will
also eliminate the need for the employee to
miss an entire or partial day to an outside
provider. Travel time is also eliminated.
Wellness services can also help employees
manage chronic health conditions and maintain better overall health, while reducing the
amount of time they spend away from the job
visiting off-site providers.
Is there ever any hesitation from employees
to utilize such services?
Employees may hesitate to use the clinic if
they question the confidentiality or are concerned that the employer will have access to
their health information. Employees may
also be reluctant to seek care from clinicians
other than their own primary care physician.
For those employees who might be questioning the value of the clinic, co-worker testimonials can often alleviate these concerns.
Today, most employers contract third-party
providers to staff and manage the clinic. This
can eliminate any issues regarding confidentiality on the part of the employees. Frequent
communication regarding the benefits of the
clinic can continue to increase the number of
employees utilizing such services. Most
employers allow employees to access the
clinic at no or little cost, which serves as a
powerful incentive.
How does the employee’s experience with a
practitioner change with on-site clinics?
Employees who use the clinic frequently
get in faster and spend more time talking to
their practitioner. Practitioners then have the
opportunity to explain the importance of preventive medicine. Because of the convenience of the on-site clinic, employees are
more likely to seek care in a timely manner,
avoiding delays that can exacerbate an illness or injury. The clinic saves the employee
money when they avoid co-pays and
deductibles that are standard requirements
of almost all health plans.
Many clinics also offer generic or over the
counter drugs at discounted or no cost. This
can dramatically improve medication compliance and improve outcomes as well as
save money for the employer and employee.
Should all companies consider implementing on-site clinics?
It is worth investigating for all companies.
Often the determining factor is the size and
demographics of the organization. Historically, employers with 1,000 employees or
more are ideal candidates for on-site clinics.
Due to the tremendous success of such clinics, smaller employers with several hundred
lives are implementing or considering on-site
clinics.
SALLY STEPHENS is president of Spectrum Health Systems. Reach her at [email protected].
